RESPA Concerns Top Lender Survey

Posted by Orb Staff on May 06, 2009 No Comments
Categories : Residential Mortgage

ew survey of 355 lenders conducted by QuestSoft, a Laguna Hills, Calif.-based provider of mortgage compliance software and services for lenders,[/b] has determined that changes to the Real Estate Settlement Procedures Act (RESPA) pose the greatest compliance concern in 2009. The poll asked lenders to rate their level of concern for 10 regulatory changes affecting the mortgage industry this year. According to the QuestSoft survey, 74% of respondents cited adjustments to fee accuracy rules set forth in RESPA as a major concern for lending practices. In addition to the changes to RESPA, 54% of the surveyed lenders said that changes to the Home Mortgage Disclosure Act, which requires lenders to disclose public loan data to prove complete service within their community, posed major concerns in 2009. Red Flags adherence (49%); compliance with federal, state and local consumer laws (45%); and borrower identity fraud (39%) rounded out the top five compliance concerns. ‘RESPA changes are very confusing right now, and lenders do not believe regulations will get easier to understand anytime soon,’ says Leonard Ryan, president of QuestSoft. ‘With H.R.1728 proposing to scrap the RESPA changes and rewrite the rules to better fit with the Truth in Lending Act, lenders need easy-to-use programs and tools to keep up with and comply with constantly changing regulations.’ SOURCE: Ques

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